Now that Oregonians have voted to legalize the possession and sale of marijuana, the small suburb of Fairview east of Portland hopes to be the most expensive place in the state to buy the product.

The Fairview City Council in October anticipated Tuesday’s election outcome and approved a sales tax of 40 percent on sales of cannabis and related products. While dozens of towns have approved similar taxes, Fairview’s is the biggest on a list compiled by the League of Oregon Cities.

Mayor Mike Weatherby and some city council members toyed with setting the rate at 100 percent as a stronger deterrent to marijuana retailers opening in Fairview, which straddles Interstate 84 near Gresham.

“It’s just something we don’t need,” said Weatherby, who did not run for re-election this year.

Although use of marijuana will be permitted statewide beginning in July for people who are at least 21, retail sales likely will begin in 2016 after a rulemaking process.

“It is fair to say the whole purpose was to try to find ways to keep it out of Fairview,” said council member Tamie Arnold, a registered nurse who fought for the unusually high tax.

Arnold, who lost her re-election bid in Tuesday’s election, said she was worried about the message that legalization would send to children.

The council vote in October also established a 15 percent tax on the sales of medical marijuana. That’s the highest rate on a shorter list of cities that plan to tax sales to people with state-issued medical marijuana cards. Most cities with taxes on medical marijuana sales set rates of 10 percent or less.

Council member Steve Owen was the only vote against the ordinance, and two council members missed the vote, which came out 4-1.

“I think they were being too harsh on the folks who need medical marijuana,” Owen said.

Owen wasn’t taking a stand on the 40 percent rate levied on recreational marijuana. But he said Fairview’s marijuana tax rates might be worth reconsidering after January, when a new mayor and three new council members begin their terms.

“We can always reduce it,” he said.

A League of Oregon Cities database lists Fairview’s tax as the largest among at least 50 cities around the state that hurried to establish sales taxes on recreational marijuana before the Nov. 4 vote on Measure 91.

The ability of cities to collect the tax inevitably will be tested in court because the measure bars local taxation of the drug.The new law designates the state government as the only tax collector on marijuana sales but provides for some revenue sharing with local jurisdictions.

City leaders around Oregon believed they could avoid the measure’s restrictions on taxation by putting ordinances on the books before Nov. 4.

Scott Winkels, a lobbyist for the league of cities who has been working on the marijuana issue, said most cities that implemented the taxes wanted to preserve local control and cover costs associated with legalization. Those costs are similar to those that accompany alcohol, he said, such as nuisance issues and intoxicated drivers.

“If somebody has a complaint… it’s not going to be the state that takes those phone calls,” Winkels said.

The next largest tax on the league’s database was set in La Grande, where council members narrowly approved a 25 percent tax last week. Coos Bay’s council set a 10 percent tax but adopted an ordinance that allows an increase to 25 percent, according to the league’s data.

Fairview’s immediate neighbors might be more attractive to potential marijuana retailers looking for lower taxes. Like many cities around Oregon, Troutdale and Portland both set 10 percent taxes on recreational sales. Gresham passed an ordinance establishing a tax but won’t set a rate until next month.

Tiny Wood Village, meanwhile, won’t have any marijuana tax because its charter requires a citizen vote, and it wasn’t possible for city leaders to make that happen before Nov. 4.

— Eric Apalategui

The following list shows 49 municipalities that the League of Oregon Cities confirmed as having enacted taxes on marijuana sales. The group’s researchers found an additional 20 cities that were considering taxes as of October.

City

Recreational tax

Medical tax

Notes

Link to news article or ordinance

Ashland

10%

5%

Link

Aumsville

10%

5%

Link

Beaverton

Link

Brookings

10%

0%

Link

Brownsville

6%

6%

Link

Burns

10%

0%

Link

Central Point

10%

5%

Link

Columbia City

Link

Coos Bay

10%

10%

The ordinance allows for a range of 0-25

Link

Coquille

10%

5%

Link

Cornelius

10%

0%

Link

Dayton

10%

0%

Via OCCMA email list

Link

Fairview

40%

15%

Link

Forest Grove

10%

Medical is excluded from the tax

Link

Gold Hill

10%

5%

Link

Gresham

The tax rate will be established by council resolution at a later meeting (Dec. 2)

Link

Happy Valley

10%

10%

City Council decided to tax medical at 10, instead of the 0 that is in the ordinance

Link

Hillsboro

10%

0%

Link

Independence

10%

0%

Link

John Day

10%

5%

Link

Klamath Falls

10%

Chose not to tax medical marijuana.

Link

Lake Oswego

10%

5%

Link

Lakeside

10%

5%

Via The World

Link

Lebanon

10%

10%

Via Lebanon Express

Link

Lincoln City

10%

Met 10-3 settled on a 10 recreational tax, medical marijuana wasn’t included in the approved ordinance.

Link

Medford

8%

The ordinance has a separate tax of 8 on the production, processing and wholesaling of recreational marijuana. It would also tax retailers at 6. The city will not tax medical, because of their permanent moratorium.

Link

Milwaukie

10%

0%

Recreational sellers are entitled to retain 5 of all taxes due to defray the costs of bookkeeping and remittance.

Link

Nehalem

10%

5%

Recreational sellers are entitled to retain 5 of all taxes due to defray the costs of bookkeeping and remittance.

Link

Newberg

10%

5%

Link

Newport

0%

0%

Council will re-evaluate the rate if Measure 91 passes

Link

North Bend

10%

5%

Via The World

Link

North Plains

10%

0%

Second reading and final adoption on 11-3

Link

Oregon City

10%

5%

Link

Oakridge

10%

5%

Via OCCMA email list

Link

Salem

10%

Medical is excluded from the tax

Link

Sandy

10%

10%

Link

Seaside

0%

0%

The rates will be established at a later date.

Link

Sherwood

10%

0%

Link

Siletz

10%

5%

Via News Times

Link

Talent

The city council approved the taxation of recreational marijuana, but the rate has not been decided. They will not tax medical.

Link

The Dalles

10%

5%

Link

Tigard

10%

5%

Link

Toledo

3%

3%

Link

Troutdale

10%

5%

Link

Tualatin

10%

5%

The ordinance requires a gross receipts tax to be applied to all legal forms of marijuana, as well as an annual tax of $ 500 on establishments that allow consumption of marijuana and marijuana-infused products. Sellers can retain 5 of taxes due to costs of bookkeeping and remittance.

OMMP Dispensaries

OMMP Dispensaries is the freshest resource for approved medical marijuana dispensaries in the state of Oregon. Every listing contains the official Medical Marijuana Dispensary number (MMD#) as assigned by the Oregon Medical Marijuana Dispensary Program. We invite all Oregon residents (18 years and older) to use our information. Registration is free, yet not required, so if you'd like to share your experiences with the rest of the community then you are more than welcome to. We only ask that you keep it positive and civil. One love.